Earlier this week, two associations related to FII investments had written to the finance minister contending that "such onerous taxation or even the risk of such taxation could threaten this important source of capital for India's businesses"
New Delhi: The government on Thursday said it will clarify its position on taxation of investments from overseas, amid foreign institutional investors (FIIs) expressing concern on the proposed anti-tax avoidance rules, reports PTI.
"As and when the position will be clarified, you will come to know, don't worry," finance minister Pranab Mukherjee told reporters in reply to concerns of FIIs' regarding possible taxation of Participatory Notes (P-Notes).
Participatory Notes are instruments that allow FIIs, which are not registered with market regulator Securities and Exchange Board of India (SEBI), to invest in Indian equity market.
The proposals in the Finance Bill 2012 related to taxation of indirect transfers of assets and General Anti-Avoidance Rules (GAAR) have created concerns among the foreign investors.
On Wednesday, the Asia Securities Industry & Financial Markets Association (ASIFMA) along with Securities Industry and Financial Markets Association (SIFMA) had written to the finance minister contending that "such onerous taxation or even the risk of such taxation could threaten this important source of capital for India's businesses".
Noting that FIIs are carefully evaluating these new tax risks, the letter said the proposals are too broadly worded.
FIIs have assets under custody of more than Rs10 lakh crore or 17% of the capitalisation of India's equity markets. Further, these entities also invest in Indian government and corporate debt, as per the letter.
As per the letter, it appears that market participants have already begun to reduce their positions in India.
In his budget for 2012-13, finance minister Pranab Mukherjee has proposed GAAR in order to "counter aggressive tax avoidance schemes, while ensuring that it is used only in appropriate cases, by enabling a review by a GAAR panel".
The fear of GAAR had spooked stock markets which tanked 2% on Monday on concerns that all short-term capital gains made by FII and P-Note investments would be taxed.
As per the Finance Bill, GAAR would be applicable from 1 April 2012.
The name plate capacity of MRPL refinery goes up to 15 MMTPA
MRPL (Mangalore Refinery and Petrochemicals Limited) announced the commissioning of the Crude and Vacuum Distillation Unit III on 29 March 2012. Production goes on stream from the Phase III refinery expansion-cum-upgradation project of MRPL.
Thus, the name plate capacity of MRPL refinery goes up to 15 MMTPA from 11.82 MMTPA.
In the early afternoon, MRPL was trading at around Rs62.40 per share on the Bombay Stock Exchange, 2.63% up from the previous close.
Mr M V Kotwal, president, L&T Heavy Engineering said, “L&T and Nexter consortium will endeavour to provide a winning solution to the Indian Army”
Defence majors Larsen & Toubro (L&T) and Nexter Systems(NS) of France have signed consortium agreements to collaborate for key artillery gun programmes of the Indian Army. These include the 155mm/ 52 cal towed gun system (TGS) and the mounted gun system (MGS) programme with NS as lead partner and a 130mm/ 39 cal M-46 up-gunning programme with L&T as lead partner.
The partnership between L&T and NS is based on delivering the best solution and value to the Indian Army. NS will transfer the production of sub-assemblies of TGS and MGS and the final integration of both systems to L&T in India. The engineering customisation of the systems to fulfil specific Indian requirements will be accomplished together by L&T and NS.
Mr Philippe Burtin, chairman and CEO, NS said, "Our teams have been working closely for more than two years and I am delighted with the results for the TGS programme."
Mr M V Kotwal, president, L&T Heavy Engineering said, "L&T and Nexter consortium will endeavour to provide a winning solution to the Indian Army."
In the early afternoon, Larsen & Toubro was trading at around Rs1,297 per share on the Bombay Stock Exchange, 1.28% up from the previous close.